Dependent Daycare Eligible Expenses

Find out more about what’s eligible and not eligible under your plan.

The Dependent Daycare FSA allows certain out-of-pocket daycare costs to be paid on a pre-tax basis. Services must be provided while the employee and their spouse are at work, looking for work or attending classes as a full-time student. Expenses that occur before the beginning of the FSA plan year are not eligible.

Services that are eligible

Daycare for eligible dependents under the age of thirteen
The care must be provided by a licensed daycare center or an IRS-compliant daycare provider. A daycare provider is IRS-compliant as long as it is not the employee’s spouse, their dependent, their child under the age of 19 or the parent of the child.

Daycare for a spouse or dependent who for mental or physical reasons are unable to take care of themselves
The care can be given inside or outside the residence. In the case of services provided outside an employee’s household, the dependent must regularly spend at least eight hours each day in the household.

  • In-home babysitter
  • After school activities
  • Daycare center
  • Outside babysitter
  • Nursery school
  • Elder custodial care
  • Latchkey program
  • Summer day camp
  • Elder daycare

Services that are not eligible

  • Services provided by a dependent or spouse
  • Services provided by a child's sibling under age 19
  • Services provided while an employee and/or spouse are not at work, such as overnight summer camps